They wouldn't. There are 30-some bowl games, you keep 64 teams like you propose, and the math works out well to give out bowl bids to teams like Colorado and Illinois.
The bowls would come along and keep affiliations with the new division.
Maybe I'm starting to understand where your unfounded elitism comes into play. Major land grant schools are not hard to get into and have reasonably low tuition -- a quick search of local schools shows the difference between UAkron and tOSU to be less than $500. I think we can agree they're on complete opposite ends of the spectrum when it comes to revenue sports.
As you note, know one gives a about these piddly little schools other than people who went there because they couldn't get into or afford a big state school (people who went Ivy or to top private schools excepted obviously).
There are plenty of reasons to not attend the larger school that have nothing to do with cost or accessibility. Using another local example, if you want to major in Polymer Science, you go to UAkron or you go to UMass. The traditional power conference schools are a non-factor. I'm sure there are plenty of other programs that I'm not familiar with.
Which... they were this year, and you were less than fine with.
All I really care about is the non-majors not having any kind of autobid for winning their shitty conference. I'm fine if they're in the same division, and can get a playoff bid if they're ranked above power conference champs etc.
I don't think you're a dumb guy; surely you can see that your proposal is a massive feedback loop that would keep those teams out even if they go undefeated ("But they didn't beat anybody!").
Oh. Well how about that. What you want already exists, it's called the NFL.
Hopefully NIU getting in will make some of the big boys that got left up get more riled up and push to get to four 16 team conferences and lock everyone else out of the playoff.